Digital transformation isn't just a buzzword anymore—it's the scramble keeping enterprise software companies like Appian Corporation (APPN) busy and profitable. And on Thursday, Appian proved it's winning that race with a fourth-quarter earnings report that had investors bidding shares up over 10%.
The numbers tell a pretty straightforward story. Appian reported fiscal fourth-quarter 2025 revenue of $202.9 million, up 22% year-over-year and comfortably ahead of the $189 million analysts were expecting. Adjusted earnings per share came in at 15 cents, topping the 9-cent consensus. Not bad for a company betting big on low-code automation platforms in an increasingly AI-obsessed world.
Following the Money: Where Revenue Comes From
Appian makes its money primarily through cloud-based subscriptions for its low-code automation platform—think of it as software that lets companies build applications without needing an army of developers. Subscription revenue is the engine, while professional services help customers actually implement the technology.
In Q4, total subscription revenue climbed 19% to $162.3 million. Professional services revenue jumped 36% to $40.6 million, suggesting companies aren't just buying the software—they're actively deploying it. Cloud subscriptions specifically grew 18% to $117 million, and the cloud net annualized recurring revenue expansion rate hit 114% as of December 31.
Profitability metrics were solid if slightly softer than last year. Adjusted operating income came in at $17.4 million versus $18.7 million in Q4 2024, while adjusted EBITDA was $19.7 million compared to $21.2 million a year ago. The company ended the quarter with $187.2 million in cash, though operating cash flow dropped to $1.1 million from $13.9 million year-over-year.
